Security Systems News - PacWest Bancorphttp://securitysystemsnews.com/taxonomy/term/6635
enCapitalSource to merge with PacWest Bancorp in $2.3b dealhttp://securitysystemsnews.com/article/capitalsource-merge-pacwest-bancorp-23b-deal
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<div class="field-item even"> Schmidt: Security group will be impacted ‘in a positive way’</div>
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<div class="field-item even" property="schema:datePublished dc:date"><span class="date-display-single" property="schema:datePublished dc:date" datatype="xsd:dateTime" content="2013-07-24T00:00:00-04:00">07/24/2013</span></div>
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<div class="field-item even" rel="schema:author dc:creator">Martha Entwistle</div>
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<div class="field-item even" property="schema:articleBody content:encoded"> <p>CENTURY CITY, Calif.—CapitalSource will still be a source of lending for the security industry after it merges with PacWest Bancorp in a $2.3 billion deal early next year. In fact, CapitalSource’s managing director Will Schmidt says he expects the security team to grow in the next few months.</p>
<p>“The merger will impact the security group only in a positive way,” Schmidt told <em>Security Systems News</em>. PacWest is supportive of CapitalSource’s “streamlined credit process,” he said. “They want us to keep doing what we’re doing. The merger is great news for our borrowers, for everyone.”</p>
<p>The deal was announced July 22 and is expected to close, following regulatory approval, in the first quarter of 2014. CapitalSource Bank, headquartered in Los Angeles and a subsidiary of CapitalSource Inc., has approximately $8.7 billion in assets and 21 branches located in California. It will merge with PacWest Bancorp’s subsidiary, Pacific Western Bank, which has $6.7 billion in assets and 75 branches in California.</p>
<p>There is an overlap of about 15 branches in Southern California. While some of those branches are expected to close, this will not affect the security lending group, Schmidt said.</p>
<p>Matt Wagner will become CEO of the combined company and of Pacific Western Bank. James J. Pieczynski, CEO of CapitalSource, will become president of the new CapitalSource division of Pacific Western Bank, incorporating all of the current CapitalSource lending operations.</p>
<p>According to the agreement, CapitalSource shareholders will receive $2.47 in cash and 0.2837 shares of PacWest common stock for each share of CapitalSource common stock. The total value of the CSE per share merger consideration, based on the closing price of PacWest shares on July 19 of $32.32, is $11.64.</p>
<p>Schmidt said that PacWest has been a traditional community bank with no presence in the security market. He noted that security lending was one of the specialty lending areas “specifically mentioned in the investor presentation and we expect continued support from the new management team.”</p>
<p>“PacWest has a very efficient funding platform and CapitalSource has a strong loan origination model, of which the security lending team is an important part. Putting these two complimentary engines together makes a lot of sense and the market agrees,” Schmidt said</p>
<p>“We have received very favorable feedback on the proposed transaction from our investors and both companies have seen a nice rise in their stock prices," he added.</p> </div>
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<span property="dc:title" content="CapitalSource to merge with PacWest Bancorp in $2.3b deal" class="rdf-meta element-hidden"></span>Wed, 24 Jul 2013 19:01:14 +0000Tess Nacelewicz16643 at http://securitysystemsnews.comhttp://securitysystemsnews.com/article/capitalsource-merge-pacwest-bancorp-23b-deal#comments